- Avax clung to the $35 Support Zone as price action has not been bullish in recent weeks
- On-chain metrics revealed steadily growing activity and potential demand for Avax
Avalanche [AVAX] has been stuck at the $35 support zone for the past month. In fact, a recent report noted that liquidation clusters below $34.72 could drag the price south. Also based on the technical analysis, the $35 support zone seemed to be a must-defensive area for the Bulls.
Failure here could push the price to $28.5 on the charts.
Source: Intotheeblock
Intotheblock’s correlation matrix revealed that Avax moved alongside Ethereum [ETH]. However, ETH has been struggling in recent weeks.
Encourage activities and encourage activities on chains
Since 2021, the core developers and the number of commits have grown.
These numbers have fallen since June 2024. And yet at press time they were down compared to the end of 2021. This seemed to be bullish in the long term. The volume did not match the end of 2021, but has noticeably picked up in recent months. Continued growth is needed to fuel demand and therefore the price of Avax.
Total value locked (TVL) has fallen dramatically from 2021 highs of $11.44 billion. While these trades have grown slowly in recent months, they are nowhere near the heights of late 2023 or 2022.
However, the large positive influx two weeks ago was intriguing. Figures for the same indicated a hike in capital or assets deposited into the Defi protocol, such as funds being added to liquidity pools or stakes. It can be interpreted as a positive signal, especially since inflows have generally been positive over the past two months.
New and active addresses are also up over the past two months. This is a sign of potential demand for Avax.
Data from Intotheblock also recorded a hike in total non-zero balance addresses in the Avalanche network. This number expanded from 3.42 million in May 2023 to 9.64 million in January.
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Overall, on-chain metrics revealed a steady growth of relevant metrics in recent weeks and months. The decline in development activity is only a minor concern for now. However, the drop in the Stablecoin Market Cap earlier this month could be a concern for the Bulls.